Stark gender disparity seen among newly registered young directors

Women's share in managerial positions in India lowest among BRICS countries

When it comes to young directors, aged 18 to 30, women trail behind men by a margin that has been widening. Their presence vis-à-vis men is also the poorest when compared to women directors in the other age brackets.

Of the new directors registered in the 18 to 30 age bracket in May 2024, only 26.5 per cent were women, while men accounted for 73.5 per cent, shows data from the Centre for Monitoring Indian Economy and the Ministry of Corporate Affairs. This gap is the highest in seven months.

Compared to their younger peers, 36.05 per cent women directors were registered in the 31 to 45 age bracket, 36.32 per cent in 46-60, and 34.16 per cent in 60 and above (chart 1). 

While the share of newly registered women directors has risen in other age groups compared to May last year, it has declined in the youngest age bracket.

In May 2024, a total of 39,706 director identification numbers (DINs) were registered. Of these, 67 per cent were male, and the rest female, corporate affairs ministry’s monthly data shows. Most of these new registrations were in the 31-45 age bracket for both men and women. DINs are required for all types of directors – executive, non-executive, independent etc. 

“In the younger age bracket, I would assume that most appointments are taking place in family-run businesses where the next generation is being inducted into the board,” says Pranav Haldea, managing director, Prime Database Group, which provides data on capital markets. “In the traditional Indian business set-up, in a majority of such cases, the baton is handed over to sons/nephews rather than daughters/nieces, which I think explains the figures,” he explains, adding that a much smaller contribution to these numbers would be from startups.

This trend is counterintuitive to the perception that the number of younger female directors is higher, and that this number dwindles as the women rise up the ladder. 

A recent report, titled ‘Women in Leadership in Corporate India’, by LinkedIn India and New Delhi-based consultancy The Quantum Hub draws attention to this “leaky pipeline”. The report said there is relatively stronger representation of women at the entry and senior independent contributor levels, but this number falls substantially as the women progress into higher leadership positions.

Female representation in India Inc is 28.7 per cent at the entry level and 29.5 per cent at the senior individual contributor level. However, only 18.5 per cent women hold higher managerial positions. At the directorial level, the number stands at 20.1 per cent; for vice-presidents, it is 17.4 per cent; and for C-suite positions, 15.3 per cent, LinkedIn’s Economic Graph shows. 

Women’s share in managerial positions in India is the lowest compared to its peers in BRICS (Brazil, Russia, India, and China, South Africa). In 2023, less than one-fifth managerial positions were held by women, the lowest, in BRICS, according to the UN Women and the Pardee Centre for International Futures. By 2030, this is expected to rise to 16.7 per cent, the report noted (chart 2).